You cause an automobile liability insurance company to face a moral hazard problem when you take ________ driving precautions ________ you buy automobile liability insurance from the company.
A. fewer; before
B. fewer; after
C. more; after
D. the same; before and after
Answer: B
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Money performs all of the following functions EXCEPT serving as a i. medium of exchange. ii. unit of account. iii. barter mechanism
A) i only B) ii only C) iii only D) i and ii E) ii and iii
Price discrimination is never perfect because:
A) it increases consumer surplus. B) it is regulated by the government. C) it lowers profits of producers to an extent. D) it is impossible to know consumers' willingness to pay.
Table 7-1 Workers Toys1 5212322430535? ? ? In Table 7-1, the marginal physical product begins to diminish with the addition of the
A. second worker. B. third worker. C. fourth worker. D. Marginal returns never diminish in Table 7-1.
Keynesians believe that
A) the link between money and aggregate demand is very strong. B) interest rates will immediately respond to a change in investments. C) fluctuations in the price level are a source of stability. D) the interest rate will not necessarily respond to a drop in investments.